UIC reports 19% drop in earnings, mainly due to lower sales of trading properties

United Industrial Corp has chalked up a 19 per cent drop in net earnings to $316.1 million.

Revenue for the year ended Dec 31 fell by 14 per cent to $609.6 million, mainly due to lower sales of trading properties, partially offset by higher revenue from hotel operations.

Lower residential property sales recognition of The Excellency in Chengdu and The Trizon, partially offset by sales of the V on Shenton, resulted in a 56 per cent drop in sales of trading properties to $120.7 million.

On the other hand, revenue from hotel operations climbed by 53 per cent to $131.8 million, following the reopening of Pan Pacific Singapore after its closure for renovation from April to August 2012.

Gross rental income from investment properties edged up to $271.5 million from $270.8 million a year earlier.

Archipelago, a joint venture residential property project, contributed to the share of its joint venture's profit of $19.5 million, with progressive recognition of development profits on a percentage of completion basis.

Earnings per share slipped to 22.9 cents from 28.4 cents previously, while net asset value per share grew by 21 cents to $3.61.

An unchanged final dividend of three cents a share was recommended.